In a strategic pivot that signals Toyota’s accelerated commitment to electrification, the Japanese automotive giant has unveiled plans to expand its electric vehicle lineup to 15 models by 2027. This ambitious roadmap marks a significant shift for the world’s largest automaker, which has been perceived as a laggard in the global EV race despite its pioneering role in hybrid technology with the Prius.
According to a recent report by Nikkei, Toyota aims to achieve an annual production milestone of approximately one million electric vehicles by 2027, establishing a solid foundation for its electric future. The company’s strategy involves developing these 15 EVs entirely in-house rather than relying on rebadged versions from its partnership with Suzuki, underscoring the company’s determination to control its electric destiny.
Toyota’s Current EV Position and Growth Trajectory
Despite being a relative latecomer to the pure electric vehicle market, Toyota has been steadily building its electric portfolio:
| Current Status | 2024 Metrics | 2027 Target | 2030 Target |
|---|---|---|---|
| 5 in-house developed EVs | ~140,000 EVs sold globally | 15 EV models | 3.5 million annual EV sales |
| Manufacturing limited to Japan and China | <2% of total global sales | 1 million annual production | Expanded global manufacturing |
| Limited global presence | Increased sales by 33% YoY | Expanded production in US, Thailand, Argentina | – |
The automaker’s current electric offering represents less than 2% of its global sales of over 10 million vehicles annually. However, the company’s updated manufacturing strategy aims to expand EV production beyond Japan and China to include facilities in the United States, Thailand, and Argentina. This geographical diversification serves multiple strategic purposes:
- Hedging against tariff risks in an increasingly protectionist global market
- Mitigating foreign exchange volatility
- Reducing delivery times to key markets
- Improving regional competitiveness through localized production
Toyota’s India Strategy: Growth Beyond Electrification
While accelerating its global EV plans, the company is simultaneously focusing on strengthening its presence in the Indian market, where it achieved record sales in the fiscal year 2025. Toyota Kirloskar Motor (TKM), the automaker’s Indian subsidiary, dispatched 337,148 vehicles to dealers in FY25, marking a significant 28% growth compared to the previous year’s 263,512 units.
Varinder Wadhwa, Vice President of Sales-Service-Used Car Business at Toyota Kirloskar Motor, outlined the company’s multi-pronged approach for the Indian market:
“We believe, with the kind of product portfolio we have now, right from the small cars to the flagship offering, increased production capacity and our network which is further going to be enhanced in tier II, tier III market…all this will further help the company to consolidate and help play a bigger role in the Indian automobile market,” he explained.
Key Elements of Toyota’s India Strategy:
- Network Expansion: Increasing the current ~1,100 sales outlets with significant growth in rural areas and smaller towns
- Production Capacity Enhancement: Scaling manufacturing capabilities to meet growing demand
- Product Portfolio Diversification: Maintaining strength in SUVs and MPVs while exploring new segments
- Electrification Roadmap: Introducing battery electric vehicles as part of its carbon neutrality commitment
The Lexus Connection: Premium EVs in Toyota’s Portfolio
The 15-model EV lineup will include offerings from the company’s luxury subsidiary, Lexus, highlighting the company’s intention to compete across multiple price segments in the electric space. This approach mirrors the company’s successful strategy in the hybrid market, where Lexus models have provided premium alternatives to mainstream Toyota hybrids.
Lexus has already committed to becoming an electric-only brand in key markets by 2030, complementing the company’s broader electrification goals. The integration of Lexus models into Toyota’s EV strategy creates synergies in development costs while allowing each brand to maintain its distinct market positioning.
Toyota’s Production Recalibration
While Toyota’s one million EV production target for 2027 represents significant growth, it reflects a recalibration from earlier projections. According to reports, the company expects to produce approximately 800,000 EVs in 2026, nearly 50% lower than its original plan. This adjustment highlights the challenges automakers face in scaling EV production amid supply chain constraints, raw material limitations, and evolving market demand.
Toyota has previously characterized its EV volume projections as “benchmarks for shareholders rather than targets,” allowing flexibility in its transition timeline. This pragmatic approach reflects the company’s trademark caution, even as it accelerates its electric vehicle plans.
India’s EV Potential: Toyota’s Quiet Preparation
While the company hasn’t explicitly announced which electric models will arrive in India, the company’s expansion of its sales network and production capacity suggests preparation for eventual EV launches in the market. Industry analysts anticipate that Toyota might introduce EVs from its global lineup or develop India-specific models similar to its approach with hybrid vehicles.
Currently, the company’s India portfolio focuses on strong hybrid technology, with vehicles like the Urban Cruiser Hyryder and Innova Hycross achieving significant market success. These hybrids serve as a transitional technology while the company builds the foundation for full electric vehicle deployment.
The Urban Cruiser EV, showcased as a concept, represents one potential offering for the Indian market, likely competing in the growing compact electric SUV segment currently dominated by domestic manufacturers like Tata Motors.
Also Read: Why the Maruti Suzuki e-Vitara Is a Big Deal?
FAQs About Toyota’s EV Strategy
How many electric vehicles does Toyota plan to have by 2027?
Toyota aims to have 15 different electric vehicle models by 2027, all developed in-house. This will include models from its luxury brand Lexus as the company accelerates its electrification strategy globally.
What is Toyota’s production target for electric vehicles?
The company targets producing approximately one million electric vehicles annually by 2027. For 2026, Toyota expects to produce around 800,000 EVs, which is about 50% lower than its original plan, showing a recalibration of its production timeline.
Which countries will manufacture Toyota’s electric vehicles?
Currently, Toyota produces EVs only in Japan and China. The company plans to expand production to the United States, Thailand, and Argentina to hedge against tariff risks, reduce foreign exchange volatility, and decrease delivery times to key markets.
What are Toyota’s plans for electric vehicles in India?
While specific EV models for India haven’t been announced, Toyota Kirloskar Motor has indicated plans to explore electrification, including the introduction of battery electric vehicles, as part of its commitment toward carbon neutrality. The company is expanding its sales network and production capacity in preparation for future EV launches.
How is Toyota performing in the Indian market currently?
Toyota Kirloskar Motor achieved record sales in FY25, dispatching 337,148 units to dealers, a 28% growth compared to FY24. In March 2025, the company sold 30,043 units, an 11% increase from the same month the previous year, showing strong momentum in the Indian market.
Toyota’s Balanced Approach to Electrification
Toyota’s strategy represents a measured approach to electrification that balances aggressive expansion with practical considerations. Unlike some competitors who have gone all-in on EVs, Toyota continues to advocate for a multi-pathway approach to decarbonization, including hybrids, plug-in hybrids, and hydrogen fuel cell vehicles alongside battery electric models.
This diversified strategy acknowledges the varying pace of electrification across global markets and the different needs of consumers. In developing markets like India, where charging infrastructure remains limited and price sensitivity is high, the company’s gradual introduction of electrified options—beginning with hybrids and eventually transitioning to full EVs—may prove more aligned with market realities.
As the company expands its dealer network in India’s tier II and tier III cities, it’s simultaneously laying the groundwork for future EV adoption beyond metropolitan areas. This comprehensive approach could potentially give Toyota an advantage as India’s EV market matures, allowing the company to leverage its established presence and customer trust when introducing electric models.
The road to electrification may have started slowly for the company, but with its ambitious 15-model lineup and production targets, the company is clearly accelerating its pace—proving that in the race to an electric future, steady progress may ultimately be as important as an early start.
